Standard&Poor's Ratings Services' ratings on Grupo Posadas S.A.B. de C.V. (Posadas) reflect the lodging industry's cyclical nature and the company's geographic concentration within Mexico. Posadas' consistent operating performance and manageable debt-maturity schedule offset those factors and position the company as the largest hotel operator in Mexico. It has a diversified portfolio with well-recognized brands. During 2007, the company opened eight new hotels in Mexico, adding 1,095 rooms—all of which are under management agreements. This is in tandem with Posadas' recent strategy to gradually change its business mix while minimizing capital requirements. Currently, owned or leased contracts generate 60% of the company's revenue, 20% are management contracts, and the remainder are Vacation Club contracts. For the 12 months ended
